Moderna Inc (MRNA)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	10.31	23.97	42.71	40.24	50.73	135.45	137.24	161.54	155.93	166.15	183.51	405.53	86.29	—	—	—	—	—
Days of sales outstanding (DSO)	days	55.09	82.74	20.73	35.85	30.73	47.27	44.33	53.51	64.12	98.69	107.70	429.93	636.49	297.44	140.59	109.08	73.98	68.28
Number of days of payables	days	26.55	24.31	18.52	21.38	26.03	21.52	12.93	16.55	32.68	14.98	21.98	6.57	33.05	55.17	59.70	37.70	23.54	18.27
Cash conversion cycle	days	38.85	82.39	44.92	54.70	55.43	161.20	168.64	198.49	187.38	249.86	269.23	828.90	689.73	242.27	80.89	71.38	50.44	50.00

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.31 + 55.09 – 26.55
= 38.85

The cash conversion cycle of Moderna Inc has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 33.91 days, which indicates that it took Moderna approximately 33.91 days to convert its investments in raw materials into cash flows from sales. This represents a significant improvement compared to the previous quarter, Q3 2023, when the cash conversion cycle was 82.94 days, highlighting more efficient management of working capital.

Looking back further, in Q2 2023, the cash conversion cycle decreased to 49.76 days, showing a positive trend in working capital management. However, in Q1 2023, there was a slight increase in the cash conversion cycle to 74.06 days, indicating some challenges in converting investments into cash during that period.

Comparing these recent quarters to the corresponding quarters in the prior year, there has been an overall enhancement in managing the cash conversion cycle. For instance, in Q4 2022, the cash conversion cycle was notably higher at 80.97 days, indicating improvement in cash flow management since then.

Further back, in Q3 2022, the cash conversion cycle was much longer at 206.19 days, which suggests that the company struggled with working capital efficiency during that period. Q2 2022 and Q1 2022 also showed extended cash conversion cycles of 243.60 days and 281.22 days, respectively, indicating significant challenges in converting investments into cash flow during those quarters.

Overall, Moderna Inc has exhibited fluctuations in its cash conversion cycle over the past eight quarters, with recent quarters showing improvements in working capital management. The company's ability to efficiently convert investments into cash flows from sales has a direct impact on its liquidity and financial performance, highlighting the importance of monitoring and optimizing the cash conversion cycle.